Jarvis Law Office

Ohio Probate Lawyer: Think Twice Before Adding Your Adult Child as a “Joint Owner” on Accounts

Estate planning is important for everyone regardless of age or financial status. We will all pass away one day, and most of us want our assets to go to our loved ones right away.  Many think that adding a child to their home deed or to their bank accounts will mean that they have access to assets quicker because they won’t get tied up in probate court. Adding a non-spouse as partial owner of your assets (like your home and money) is called joint tenancy. Joint tenancy is a type of arrangement that is commonly used by couples and business partners. If one partner passes away, the remaining partner will receive full ownership of any joint assets immediately and avoid probate.

In theory, this sounds like a good idea. But, there are many potential pitfalls. Here are a few things that you should consider before adding your child as joint owner to your assets.

1. You may need mutual consent for anything you do with certain assets. If you add your child as a joint tenant, you are essentially giving ownership rights to your child for those assets. Consider the case of a house held in joint tenancy. Because your child is now a co-owner, he or she would have to agree with any choices you make- including the wish to sell.  What if the co-owner refuses or disagrees? Such a situation could ensnare you in a battle you never saw coming. 

2. What if something happens to your child? If the child you name as co-owner files for bankruptcy, divorce, or gets sued, any assets that are in their name, including joint assets, will be at risk.

3. Depending on circumstance, your bank accounts could be frozen when you pass away. If you have debts, the court could freeze your accounts to stop the co-owner from liquidating the account to avoid those debts. This means your child would not have immediate access to your funds, as you desired. Further, if the court suspects that the child was a joint owner just for convenience (or to simply avoid probate), and did not actually contribute, then the court can step in and freeze the accounts. In either situation, a joint tenancy can create a lot of problems. Not only would the accounts be frozen but your family would be faced with a long and costly legal process to settle your estate.

4. The survivor may do anything they please with the assets. Once the joint tenancy is created, your child becomes a joint owner of the assets in question. However, once you pass away, he or she then becomes the sole owner, and has total power to do whatever he or she wants with the inheritance. Maybe you have a “hand-shake” agreement on how your assets will be divided, but your co-owner is under no legal obligation to follow that agreement once they become the sole owner. Any heirs that were to benefit from such an agreement would have very little legal recourse.

Probate in Ohio can be a long and arduous process, and it usually makes sense to avoid it, if possible. However, creating a joint tenancy with a child is probably not the best estate planning choice. There are many more effective legal strategies available to protect your assets and avoid probate. To inquire about these options please call the Jarvis Law Office today at 1-877-653-3450 to set up a consultation.  

Ohio Elder Law Attorney: What to Know About Respite Care

It’s no secret that caregivers of elderly parents and/or elderly family members have a difficult job, especially when many take care of their own children as well. It is a demanding task, often leaving caregivers burnt out and exhausted. Therefore, elder law attorneys often advise clients about respite care and adult day care.  These services provide caregivers a chance to relax, refresh, and recharge – meaning they’ll be better able to care for their loved ones.

 

Respite Care

Respite care is often performed by family members, trusted friends, or professional caregivers and can be beneficial to both the caregiver and the senior. It allows the caregiver a chance to take a break or attend to other responsibilities, while the senior can benefit from a change of pace. Respite care often takes place in the home, but sometimes churches and senior centers offer respite care services. These services include companionship, personal care, meal preparation, and assistance with medication. If you don’t have family members or friends who can provide respite care, your local elder law attorney can give you a list of locations that provide respite care, as well as agencies that refer respite caregivers. Take note: when hiring a caregiver through an agency, be sure to do your research and make sure the agency is licensed and insured.

Adult Day Care

Adult day care facilities differ from respite care in that they are organized programs and provide more care options for seniors. In addition to the options listed above, adult day care centers are also great places for seniors to socialize and participate in activities. Caregivers can also take advantage of the services offered by adult day cares, such as referrals to other care organizations and certain types of social services. Adult day care facilities differ from nursing homes in that they offer little to no medical services to seniors, even if they are associated with a hospital or other medical care facility. Typically, adult day care centers only help with administering medication and sometimes with physical therapy.  As with respite care agencies, elder law attorneys urge you to research adult day care centers in your area to make sure they have a good reputation and offer the kind of services needed for your elderly loved one.

If you have questions about respite care or adult day care facilities for your elderly parents or family members, or if you’d like to explore different ways to pay for care, please contact our office at 1-877-653-3450.

Ohio Estate Planning Attorney: Considerations When Choosing an Adult Child to Serve as Your Healthcare Agent

Choosing someone to act as your Health Care Power of Attorney is a key part of any estate plan. If you become incapacitated or are unable to make decisions, it is important to have someone you trust make those decisions on your behalf. One of the areas where you should have someone on “standby” to speak for you is medical care. For parents, it is natural to select an adult child because they know them best. The problem comes when you have more than one adult child to choose from.  

Although it is natural to want all of your children to speak for you, there are a lot of unforeseen circumstances that can lead to problems during a medical emergency.

Here is why you should name only one child as your agent in the case of medical emergency:

• Medical emergencies are unexpected events and often arise at inconvenient times and require immediate decisions. If multiple agents need to be contacted in order to reach a decision, precious time will be lost.
  

• Most people select a child as their Health Care Power of Attorney because they will act in their best interest, but with multiple agents, there is no guarantee that everyone will agree. Reasonable people acting in what they believe to be their parent’s best interest can come to very different conclusions. Disagreements in life threatening situations can result in inaction.
  
• Not everyone is capable of making difficult life or death decisions for their parent. It is important to select someone that is equipped and prepared to make these decisions.
  
• You want to select someone that shares your values or at least can be trusted to defer to your values and wishes – even if they disagree with your choices.

Parents often do everything possible not to show favoritism among their children. But when it comes to something as important as your health and life, it is best to select the one person you believe will act in your best interest and follow the directions that you leave them. One great way to make this choice is to speak to your children and to get a clear sense of which one is right for the job. You may find that some will decline the position knowing it would be too difficult for them. You may also simply choose the child that lives nearby and is easily reachable in case of an emergency.

Selecting one child may not be easy, but it will be better for everyone if you openly discuss the issues in advance and make sure all your children understand your wishes. If you need any assistance in selecting a Medical Power of Attorney or you would like to start the legal process, please call the Jarvis Law Office at 1-877-653-3450.

The Letter of Intent as a Part of Your Special Needs Planning in Ohio

The documentation that you create with your special needs planning lawyer will be quite detailed and will take an incredible amount into consideration, but it will likely not cover every possible concern or wish you may have for your child’s future care.  For that purpose, many parents work with their lawyer to create a Letter of Intent.

The Letter of Intent is along the lines of a personal letter, rather than being a more formal legal document.  It is used to supplement the special needs plan to provide additional information. 

Uses for the Letter of Intent

• Parents often use it to address wishes that they have which don’t really fall under the purview of legal requirements.
• This document is also useful for addressing information about your child that is subject to change. While various other special needs planning documents tend to be more static, the Letter of Intent can be changed as the information in it needs to be updated.
• Finally, a Letter of Intent is used to discuss topics that are just too lengthy to include in the special needs trust.

The letter is typically addressed to the people who will be caring for your child once you are unable to fulfill that role.  When the time comes, your attorney will share the Letter of Intent with the child’s caregivers, as well as with the trustee.  They can use the letter to help interpret your desires and to help follow through on the wishes you have for your child.

Where to Get the Letter

Your special needs attorney can help you draw up your Letter of Intent as a supplemental piece of your special needs trust.  To schedule a complimentary consultation with our law firm call us at 1-877-653-3450.